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Procurement at AGC Glass Europe

Procurement of goods, services and energy represents 60% of the turnover of AGC Glass Europe. The 2,000 or so suppliers listed at corporate or regional level contribute to attaining the vision of AGC, which makes Procurement a strategic function within the group. Procurement contributes directly to the reputation and performance of the group, by securing supplies, finding the optimum total cost of ownership and contributing to the development of new businesses. All this results in savings throughout the chain of value, lowering the requirement for working capital and obtaining new goods and services, achieved through negotiation, collaboration or partnership with the suppliers.

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Our procurement organization

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Purchases by AGC Glass Europe can be divided into various categories: from raw materials to industrial supplies and energy, as well as office equipment, IT equipment, investment in production plant, service contracts and so on. The categories are particular to each business within the group, or in certain cases apply to all its activities.

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The different categories can in turn be classified into four levels:

Corporate purchases (covering the requirements of AGC Glass Europe as a whole)

Division purchases (covering the requirements of one of the two divisions)

Regional purchases (used by different sites in the same region)

Local purchases (used by a single site)

Consult the lists of persons responsible for each category at corporate, division and regional level :

Our Procurement policy

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The Procurement department adheres to the essential values promulgated throughout the AGC Group, namely Innovation & Operational Excellence, so as to accomplish its mission. This involves acquiring products, energy and services of the right cost and quality to guarantee the best level of performance by AGC Glass Europe for its customers.

Safety

Compliance with all laws and company policies/rules for occupational health & safety

Integrity

See in particular principles 1-2-10-11-12

Respect for People: commitment to the non-engagement in child or forced labour and to the provision of a living wage to workers in the sense of the International Labour Organisation

Compliance with legislation and company policy governing ethical conduct of business

Adherence to the obligations incumbent on personnel of AGC Glass Europe to:

Act only in the interests of the company, to the exclusion of personal benefit

Comply with policy on gifts

Avoid all situations leading to a conflict of interests

Respect the tangible and intangible property of the company

Environment

See principle 4

Contribution to the objective of AGC Glass Europe to work for protection of the environment in all its activities (in particular technological development, planning, design, production, sale and product handling)

On the basis of the above, the quality expected of suppliers is assessed using two methods, namely (1) the Supplier Audit, and (2) the Supplier Assessment.

(1) The Audit is based on the principle of prevention. It is used to select suppliers by identifying their past performance, competencies, strengths and possibilities for improvement. It also incorporates the requirements of AGC Glass Europe.

(2) The Assessment applies to the supply of products and services that involve an inherent risk to the company. It consists of evaluating the quality supplied, the cost, the reliability of performance, the level of development of the service in relation to our requirements, the level of prevention inherent in the quality assurance system, and observance of safety and environmental protection. If the results are found to be unsatisfactory, corrective measures are required.

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The supplier relationship program

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AGC believes the next step towards procurement excellence can be achieved through a better integration with its key partners, because these key suppliers drive innovation and/or can be a source of additional value and competitive advantage. For this reason, AGC has developed a methodology aiming at creating mutually beneficial additional value from its collaboration with these key suppliers called “AGC SRM program”. It is based on trust and a fair sharing of risks and rewards. For AGC and its participating partners, this added value can take different forms, from risk reduction (security of supplies, business continuity), decrease of total cost (efficiency, working capital,..) to mutual growth (co-development of new products, added-value services, etc…).

Do not hesitate to contact one of our category manager if you wish more information or you would like to step in the program.